In the new year, LG Energy Solution will focus on targeting global automobile companies and the North American EV market.
LG Energy Solution revealed that they have reached sales totaling 7.6482 trillion KRW in the 3rd quarter this year through North American clients. In particular, with their supply of EV batteries to companies like General Motors (GM), Hyundai Motors, and Lucid increasing, they recorded their greatest sales, which had an 89.9% rise compared to the same period last year. Their operating profit also reached 521.9 billion KRW, far exceeding the 2nd quarter of last year, which reflected one-off factors such as licensing fees and settlements.
The growth of the North American market was largely driven by preemptive investments. LG Energy Solution has been selling EV batteries to GM since 2012. They were also selected as the sole suppliers of batteries for the Chevrolet Volt in 2009. As the first EV in the world, Volt was different from existing hybrids, in that they were cars that ran purely on battery power.
They are also constructing joint battery factories with companies like Stellantis, Honda, and GM. Headed by their own factory in Michigan, LG Energy Solution’s production capacity in the North American region reaches 250~260 gigawatt hours (GWh). It is the largest in scale in comparison to global battery companies.
Changsil Lee, the CFO of LG Energy Solution, said that, “EV battery shipments to North American clients have increased, and demands for energy storage system (ESS) and information technology (IT) battery products have increased as well,” and revealed that, “We will strive to achieve a solid performance in the difficult external business environment in the 4th quarter.” Their sales forecast for this year is 25.3 trillion KRW. The company raised mid-to long term business goals to triple their sales and reach double digit operating margins within 5 years and revealed that they will focus on targeting the North American market.
They are also strengthening their establishment of a North American supply chain. They are setting out to localize key materials like anodes, cathodes, and electrolytes in North America through partnerships with major partners. With key minerals like nickel, lithium, and cobalt, they will actively respond to regional production needs with mineral companies located in countries that have FTAs with the US.
LG Energy Solution sighed a business agreement Australia’s Syrah Resources Limited for the supply of natural graphite this year. They will be supplied with cobalt sulfate and lithium hydroxide by Canadian mineral companies like Electra, Avalon, and Snow Lake. They have secured lithium hydroxide from the US’ Compass Minerals and lithium concentrate from Australia’s Liontown. They will also focus their capabilities on building smart factories. They plan on improving yield, stabilizing quality, and improving productivity by building a global integrated management system by digitizing production process.
By Staff Reporter Jiwoong Kim (jw0316@etnews.com)